Category: General Anti-Avoidance Rule

What’s new? The latest evolution in the GAAR “modernization” proposals

Published by Molly Martin

I.              INTRODUCTION

The Department of Finance first publicly announced an intention to modify the general anti-avoidance rule (the “GAAR”), found in section 245 of the Income Tax Act (Canada) (the “Act”), on November 30, 2020. This intention most recently came…

SCC confirms application of GAAR to deny tax loss utilization

Published by Joseph Eid

Deans Knight Income Corp. v. Canada, 2023 SCC 16 (“Deans Knight”) involves the application of the general anti-avoidance rule (“GAAR”) to the utilization of non-capital losses and other deductions by a taxpayer, Deans Knight Income Corporation (the “Taxpayer”). Experiencing…

Principal tax measures from Federal Budget 2023 – Part 1: Personal and private company measures

Published by Alexei Paish & Asif Abdulla & Gloria Wang

Budget 2023 – A Made-in-Canada Plan: Strong Middle Class, Affordable Economy, Healthy Future (“Budget 2023”) was tabled by the Department of Finance (“Finance”) on March 28, 2023 (“Budget Day”). The stated focus of Budget 2023 includes targeted inflation relief, stronger…

A Critical Analysis of the Principal Income Tax Measures from Federal Budget 2022 (and Subsequent Legislative Proposals)

Published by Thorsteinssons LLP

Authors: Gloria Wang, Sarah Faber, and Alexander Demner

Budget 2022: A Plan to Grow Our Economy and Make Life More Affordable (“Budget 2022”) was tabled by the Federal Government on April 7, 2022 (“Budget Day”). The government…

SCC Dismisses Crown Appeal in Alta Energy Case

Published by Chris Marta & Alexei Paish & Sarah Faber

Last week, the Supreme Court of Canada (“SCC”) dismissed the Crown’s appeal in Canada v. Alta Energy Luxembourg S.A.R.L. (2021 SCC 49). In doing so, the SCC wrestled with important, timely, and politically contentious questions of domestic and international…

Federal Court of Appeal decision in Deans Knight creates uncertainty with new test for loss utilization

Published by Natasha Kisilevsky & Jessica Guo

The Federal Court of Appeal (the “FCA”) recently released its highly anticipated decision in Canada v. Deans Knight Income Corporation, 2021 FCA 160. The case represents the FCA’s first consideration of an alleged abuse of the “control” threshold for…

Bill C-208 – Department of Finance confirms ITA amendments are in force and modifies its intended approach

Published by Alexander Demner & Alvin Lun

On June 29, 2021, Bill C-208 received Royal Assent. As previously discussed, that Bill amended the federal Income Tax Act (the “Act”) with the intention of facilitating intergenerational business transfers. The amendments sought to accomplish those means by, in…

2021 Federal Budget – A Critical Analysis and Overview of the Principal Proposed Income Tax Measures

Published by Thorsteinssons LLP

Authors: Alexander Demner, Tyler Berg, and Gloria Wang

The federal government released its 2021 budget on April 19, 2021. Coming in as the longest budget in Canadian history, Budget 2021 proposes a myriad of income tax…